Scottish oil and gas firm Eland, which is focused on production in Nigeria, has seen its financial firepower boosted with a banking deal.

The Aberdeen-based company said its existing lending facility of $35 million with Standard Chartered Bank, has now been syndicated to include the Mauritius Commercial Bank Ltd and Mercuria Energy Trading, with all three institutions holding an equal position.

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The move has raised the facility up to $40 million and is based on production and cash flows from three of its wells in the Opuama field.

Of the available facility only $15m is currently drawn.

Eland said the extra headroom will be “conservatively used”, along with the cash inflows from production to support the funding of the remaining Opuama infill wells and growing production to over 30,000 barrels a day in the first half of next year.

The company said it has a current cash position of $17.4 million with a further $13.7 million to be received this month.

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Ronald Bain, chief financial officer of Eland, said agreement of the new banking arrangements demonstrates the quality of the company’s asset andits expected future cash flows.

"The company's current cash position combined with cash inflows and the newly syndicated facility means we have a strong financial position from which to execute our near-term work programme,” he said.